NIMASA moves to appeal court judgment in case against NLNG

The Director General of Nigerian Maritime Administration and Safety Agency (NIMASA) Dr Dakuku Peterside has expressed the Agency’s dissatisfaction with the judgment of the Federal High Court by Justice M. B. Idris, delivered on Tuesday in the case between NIMASA and the Nigeria Liquefied Natural Gas, (NLNG).

The Hon. Justice M.B. Idris of the Federal High Court in Lagos had delivered his judgment in favour of the NLNG.

Consequently, Dr Dakuku has stated the Management’s intention to appeal the judgment. He said that “the Agency’s Legal team is waiting for the certified true copy of the judgment which we will study and respond as appropriate.”

NIMASA in a statement in Lagos, recalled that it had in 2013 requested the NLNG to pay all statutory Levies accruable to the Agency, including the 3% levy on gross freight on inbound and outbound international cargo, 2% Cabotage levy and Sea Protection levy stating that the NLNG was not exempted from payments of statutory levies after its tax holiday ended many years ago.

It said that Section 2 (1) of NIMASA Act states that “This Act shall apply to ships, small ships and crafts registered in Nigeria and extended to ships, small ships and crafts flying a foreign flag in the Exclusive Economic Zone, Territorial and Inland Seas, Inland Waterways and in the Ports of the Federal Republic of Nigeria”. The only vessels exempted from levies under the NIMASA Act are “…warships and military patrol ships”. (Section 2 (2).

The statement further noted that NIMASA has portfolios of statutory revenues that it collects from shipping companies/ship operators, manning agents and seafarers. This the agency pays into the coffers of the government. It is within these funds generated that the agency uses to develop and police the maritime sector. NIMASA does not receive any government allocations.

According to the statement, “the Honourable Court had in 2013 ruled on the agreement by both parties which stipulated that NLNG would pay outstanding levies and also to continue to pay all applicable levies in line with the NIMASA mandate.”